Matthews International Q2 sales fall

Overview

• US memorial products maker's fiscal Q2 sales declined

• Adjusted EPS for fiscal Q2 increased 8.8% yr/yr despite recent divestitures

• Company posted GAAP net loss, citing unusual charges and amortization impacts

Outlook

• Matthews maintains fiscal 2026 adjusted EBITDA guidance at $180 mln, including Propelis share

• Company expects Memorialization segment to deliver modest year-to-year sales growth in 2026

• Matthews anticipates challenging conditions for engineering business to persist in 2026

Result Drivers

• MEMORIALIZATION SEGMENT - Higher sales in the segment driven by The Dodge Company acquisition and cost synergies, with inflationary price realization offsetting lower volumes

• COST REDUCTIONS - Decline in corporate and non-operating costs, with further cost reduction plans underway as post-divestiture obligations expire

• DIVESTITURES AND REFINANCING - Lower recurring interest expense due to bond refinancing and debt reduction funded by divestitures

Company press release: ID:nPn3s6N7Wa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "buy"

• Wall Street's median 12-month price target for Matthews International Corp is $38.00, about 36.8% above its April 29 closing price of $27.78

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 29 three months ago

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